St. LOUIS (ResourceInvestor.com) -- The gold-oil ratio struck a double bottom this past July and turned a corner it has never looked back on. There is now a very firm technical line to be drawn under 6.45 barrels of oil per ounce of gold with that low being struck three times since 2005 - and bounced off every time.

There has never been a sharper reversal though as gold's has outpaced oil more rapidly than we've seen it at any time in the past 5 years. Indeed, the ratio has moved three standard deviations in 95 days with most of the change taking place since September 22, 2008.

Retail investors lack obvious and cheap entry to the gold-oil trade. However, quality gold equities are shouting value even as stockholders wiped out by recent liquidation trends may feel disinclined to put any more money into the sector. Remember that gold is going to buy not only a lot more oil, but also a lot more steel, rubber, copper, chemicals and trucks among the many inputs that have been inflating faster than revenue in recent years. We think there is a good prospect for a golden period of solid mining profits. Just pick them carefully because a shotgun investors will not beat snipers in this market.